Viewing Online On Ground Online sections — 7 topics, discussion questions, one cumulative final In-person sections — 3 units, Exams 1–3, then the final
Course format
Topic 04 · Loans
Unit 2 · Topic 04 · Loans

Financial Literacy – Loans

Short- and long-term loans — auto loans, credit cards, student loans, and mortgages — plus an APA-style written analysis. The heaviest week of the course.

Start Lesson 1 Play all 16 videos First time? Tour the week →
ORBITAL · TOPIC 04LOANS16 VIDEOS · 1H 01M0

Lessons

6 lessons · each with a video, a worked example and practice
  1. 3:45 Lesson 1: What a loan is, and what amortization means.Before any formula: four pieces (P, r, t, M) and a concept (amortization). A loan is principal you pay back in fixed monthly chunks; each chunk is part interest, part principal, until the principal hits zero.
  2. 3:44 Lesson 2: The amortization formula, anatomized.Five pieces, one negative exponent, and the whole topic depends on it. Walk through what each part does.
  3. 3:47 Lesson 3: Auto loans: the standard amortizing loan.Fixed monthly payment, fixed term (typically 3-7 years). Two new pieces enter: down payment, and the difference between sticker price and amount financed.
  4. 3:46 Lesson 4: Credit cards: the minimum-payment trap.Revolving credit, no fixed term. The monthly math is deceptively simple — interest portion + principal portion — but minimum payments at 24% APR can trap a $5,000 balance for decades.
  5. 3:45 Lesson 5: Student loans: subsidized, unsubsidized, repayment plans.Federal student loans amortize the same way as auto loans, with two twists: interest can accrue during school (unsubsidized) or not (subsidized), and there are multiple repayment plans you can pick at payback.
  6. 3:55 Lesson 6: Mortgages: 30 years, dollar by dollar.The longest, biggest amortizing loan most people will ever sign for. The new math: the principal/interest split per payment, and what it means that early payments are mostly interest.

Then

the rest of the week
Discussion DQ 1: Discussion Walkthrough, posting rhythm, and what the DQ is really asking. Discussion DQ 2: Discussion Walkthrough, posting rhythm, and what the DQ is really asking. Major assignment Major Assignment 2: Financial Literacy 4 components — walkthrough for each. 6 questions Review Six worked questions to practice before ALEKS. Self-check Mastery Check 4 quick questions - 2 multiple choice, 2 calculations. Perfect score earns one substantive participation post.
Unit 2 This topic is assessed on Exam 2, together with Topic 3. See what is on it

What you'll learn

255 pts 310 pts in Unit 2 3 objectives

What you'll learn

  1. Compute monthly payments and interest costs of short-term loans such as auto loans or credit cards.
  2. Find the interest, the balance due, and the minimum monthly payment for loans.
  3. Analyze the various aspects of long-term loans such as student loans and home mortgages.

Interactive tools

Playground Amortization Sandbox Drag the principal, rate, and term sliders. Watch the monthly payment, total cost, and total interest update live. The balance curve and amortization schedule reveal how each payment splits between interest and principal. Playground Credit Card Trap Set a starting balance and APR. Watch three payment strategies race to zero — minimum only, double the minimum, and a custom dollar amount. The minimum-only curve flattens for decades. The picture is the lesson. Course tool Financial Formulas Calculator All seven ALEKS dictionary formulas in one calculator — including the loan amortization monthly-payment formula. Solve for any variable; Excel workbook included.

Tools & Resources

Library Topic 4 resource library Curated extras across all 6 lessons. 3 items available so far. Study aid Glossary Every vocab term across the 6 lessons in one study sheet. 31 terms so far. Study aid Cheat sheet Key formulas, common mistakes, and quick-reference factors. Printable for the test.
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